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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Reorder cost
Sir,
JIT system imply relatively lower reorder cost? True!
(Ref: Kaplan Green Co 3)
Although I know you have a BPP kit..Can you pls help me with this question?
Won’t JIT necessitate more reordering
Since attempt to hold less inventory?
JIT certainly will mean that there will be more orders. I can only assume that the statement you quote is referring to the reorder cost each time. We would want this to be low because the quantity ordered each time will be lower.
Okay sir, Does make sense.. Thanks for your support 🙂
You are welcome 🙂
